Forum Discussion

Erisam's avatar
Erisam
Contributing User
5 years ago

Creating Witholding tax 5%

Hello everyone. If anyone can help me out how to create the tax code on MYOB v19 and briefly explain how it works. Since we are not allowed to include such tax on the invoices and this cause the underpayment of trade debtors account accumulated. How can we fix this, please? Looking forward to hearing your swift response.

  • Jesh_D's avatar
    Jesh_D
    5 years ago

    Hi Erisam 

     

    Thank you for your post. 

     

    Tax codes are used to track tax paid to and by your business. Each code represents a particular type of tax.

    AccountRight has an extensive list of codes that can be used in a variety of situations—for example, when doing business with overseas customers, when tracking capital acquisitions, and so on. If you need help with the tax codes applicable to your business, I do recommend seeking advice from your accounting advisor or the ATO.

     

    In terms of creating a tax code:

     

    1. Go to the Lists menu and choose Tax Codes. The Tax Code List window appears.
    2. Click New. The Tax Code Information window appears.
    3. In the Tax Code field, type a code (up to three characters) for the new tax and press Tab.

    Complete the other fields in this window.
    Create Tax Code

     

     

    A Enter a description, type and rate. If you selected Consolidated as the Tax Type, see Consolidated tax codes.
    B Select the linked account for tax collected and for tax paid. These fields are only available for some tax types. Check with your accounting advisor if you're not sure which accounts to choose

     

    Please let us know how you get on and if you have any further questions. 

  • Jesh_D's avatar
    Jesh_D
    Former Staff
    5 years ago

    Hi Erisam 

     

    Thank you for your post. 

     

    Tax codes are used to track tax paid to and by your business. Each code represents a particular type of tax.

    AccountRight has an extensive list of codes that can be used in a variety of situations—for example, when doing business with overseas customers, when tracking capital acquisitions, and so on. If you need help with the tax codes applicable to your business, I do recommend seeking advice from your accounting advisor or the ATO.

     

    In terms of creating a tax code:

     

    1. Go to the Lists menu and choose Tax Codes. The Tax Code List window appears.
    2. Click New. The Tax Code Information window appears.
    3. In the Tax Code field, type a code (up to three characters) for the new tax and press Tab.

    Complete the other fields in this window.
    Create Tax Code

     

     

    A Enter a description, type and rate. If you selected Consolidated as the Tax Type, see Consolidated tax codes.
    B Select the linked account for tax collected and for tax paid. These fields are only available for some tax types. Check with your accounting advisor if you're not sure which accounts to choose

     

    Please let us know how you get on and if you have any further questions. 

    • Erisam's avatar
      Erisam
      Contributing User
      5 years ago

      Thank you very much Jesh for your good response. It helps me much for creating the tax code. If you can also help me for the other part of my question about how to eliminate the underpayment from different invoices. In our context, the Ministry of Finance does not allow any SOEs or even private company to include the 5% (Service tax) in the invoice. This is just implemented this year particularly on the Charter services and Freight. We have faced the issue of underpayment since we are charging $500, for instance, on our MYOB system and the amount collected from customers is less because of the 5% deducted from the Ministry. Grateful if you can elaborate more on this and how to apply on MYOB. Looking forward to seeing your prompt response. Thank you again for answering the first part of my question. 

       

       

       

       

       

      • Jesh_D's avatar
        Jesh_D
        Former Staff
        5 years ago

        Hi Erisam 

         

        Thank you for your reply. Unfortunately, this part of the question as noted in my original post would need to be directed to your accounting advisor, since we are unfamiliar with the Ministry of Finance's rules and regulations with respect to withholding tax.